Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Non-Deal Roadshow (December 2018)
115 slides from Omv's roadshow presentation, Dec 11, 2018
Slide 1: OMV Capital Market Story
OMV CAPITAL MARKET STORY December 2018 OMV Aktiengesellschaft
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements. Forward looking statements may be identified by the use of terms such as “outlook”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “target”, “objective”, “estimate”, “goal”, “may”, “will” and similar terms, or by their context.
Slide 3: OMV – Strong Asset Base
OMV – STRONG ASSET BASE 421 kboe/d 1.15 bn boe 17.8 mn t 2.5 mn t 113 TWh 31 TWh Production, 9m/18 Reserves, 2017 Total refining Total petchem Natural gas sales Gas storage capacity capacity volume, 2017 capacity UPSTREAM DOWNSTREAM OIL DOWNSTREAM GAS 4+1 core and development regions 3 refineries in
Slide 4: OMV – Integrated oil & gas company, geographically focused
OMV – Integrated oil & gas company, geographically focused Clean CCS Operating Result Group capital employed 2017 based on 2017 capital employed plus Abu Dhabi and New Zealand acquisition ~40% ~20% Upstream ~30% 0.9 Fuels MEA 1 + EUR ~70% Australasia 1.2 Europe 3 (Upstream and Downstream) bn ~10% 0.
Slide 5: Why invest in OMV
Why invest in OMV Integrated and balanced Geographically focused High quality assets and portfolio of Upstream and low-cost Upstream efficient operations and Downstream ensures assets in Downstream financial resilience Strong organic free cash Well positioned for Progressive dividend flo
Slide 6: OMV's integrated and balanced portfolio pays off – resilient cash generation
OMV’s integrated and balanced portfolio pays off – resilient cash generation Cash generation and oil price development 1 EUR bn 3.9 3.3 3.2 3.0 Downstream 99 Upstream 52 54 Oil price 2 44 Corporate 3 2014 2015 2016 2017 3.3 7.2 4.7 6.0 OMV Indicator refining margin, USD/bbl 1 Sources of funds: cash
Slide 7: Upstream – High-quality portfolio
Upstream – High-quality portfolio Focused portfolio Production Low production cost 9m/18 split by region, kboe/d USD/boe Australasia MEA 10.6 8.8 7.3 CEE 4+1 core and development regions Russia 421 kboe/d Production split ► CEE ► North Sea + Australasia ► MEA North Sea 2016 2017 9m/18 ► Russia 7 | C
Slide 8: Downstream Oil – European champion
Downstream Oil – European champion Top refiner Secure sales Strong retail Integrated oil outlets brands value chain ~ 50% of refinery 1st quartile European Excellent management production sold through in core markets and in refiner 1 and of the integrated retail and petrochemical premium fuels olefi
Slide 9: Downstream Gas – European integrated supplier
Downstream Gas – European integrated supplier Integrated Strong Europe gas Reliable portfolio European hub partnerships presence Positioned at the Long-term Integrated along the From North West to center of Europe’s reliable partnerships value chain from well to South East Europe transmission networ
Slide 10: Stringent cost discipline
Stringent cost discipline Cost savings program 1 CAPEX 3 2015 normalized baseline, EUR mn EUR bn (40)% 330 2.8 250 1.9 200 1.7 Delivered Target 2 Target 2 Delivered 100 Target 2016 2017 2015 2016 2017 1 Based on Operating Cost versus 2015 baseline according to OMV definition on a comparable basis 2
Slide 11: Improved profitability
Improved profitability Clean CCS Operating Result Clean CCS ROACE EUR bn % 3.0 14 1.7 8 1.5 7 2015 2016 2017 2015 2016 2017 11 | Capital Market Story, December 2018
Slide 12: Substantially improved financial performance
Substantially improved financial performance Clean CCS net income attributable to stockholders EUR bn 1.6 Clean CCS EPS 1.1 1.0 54 Oil price 2017, EUR 2015 52 USD/bbl EUR 4.97 3.52 44 2015 2016 2017 7.2 4.7 6.0 OMV Indicator refining margin, USD/bbl 12 | Capital Market Story, December 2018
Slide 13: Strong organic free cash flow
Strong organic free cash flow Organic free cash flow after dividends in 2017 Excluding acquisitions and disposals, EUR bn 3.4 1.2 +1.2 ► Reshaped and balanced portfolio of Upstream and Downstream assets drive 2.3 cash generation Cash flow from ► Strong organic free cash flow enables operating activi
Slide 14: OMV 2025 – Higher performance and more value ahead
OMV 2025 – Higher performance and more value ahead ► Leverage on proven concept of integration ► Significantly internationalize Upstream and Downstream ► Build strong gas market presence in Europe ► Extend record of operational excellence Drive operating result and cash generation 14 | Capital Marke
Slide 15: Higher-quality Upstream portfolio
Higher-quality Upstream portfolio Focused international player > 100% 4+1 600 Reserve core 500 Replacement regions Rate 1 348 8.8 <8 <8 2017 2020 2025 Production volumes, kboe/d Production cost, USD/boe 1 3 years average 15 | Capital Market Story, December 2018
Slide 16: Downstream Oil – Further strengthen European position and grow internationally
Downstream Oil – Further strengthen European position and grow internationally st 1 quartile 1 ► Shift to higher value products ► Further increase captive sales volumes ► Export successful European business model internationally towards growing markets Fuels Olefins ► Increase petrochemical and Net
Slide 17: Downstream Gas – Build strong market presence in Europe
Downstream Gas – Build strong market presence in Europe ► Leading integrated supplier from North West to South East Europe ► Monetize increasing equity supply > 80% gas to be imported by 2030 ► Double sales revenues and increase overall margins ► Leverage Nord Stream 2 380 bcm imports required 1 1 I
Slide 18: Continue to grow value
Continue to grow value Clean CCS Operating Result EUR bn ≥5 ≥4 Capex Acquisitions Downstream ► Positive free cash flow after Capex dividends 3 Acquisitions ► Long term gearing ratio target of ≤ 30% ► Progressive dividend policy Upstream 2017 2020 2025 18 | Capital Market Story, December 2018
Slide 19: Capital allocation priorities
Capital allocation priorities 1 CAPEX ROACE TARGET 2 Acquisitions ≥12% 3 Dividends Mid- and long-term 4 Debt reduction 19 | Capital Market Story, December 2018
Slide 20: Focused investments
Focused investments CAPEX Acquisitions EUR bn EUR bn 2.0 - 2.5 10 2.1 Downstream 8 years 1.8 Upstream 3 years 2015-2017 2018-2025 2015-2017 2018-2025 Ø p.a. Ø p.a. Efficient capital allocation Value adding acquisitions Strict cost management Keep optionality and flexibility Invest along th
Slide 21: Maintain resilience
Maintain resilience Oil price free cash flow break-even 1 After dividends excluding acquisitions and disposals, USD/bbl Generating cash, delivering value 70 Capturing value- Efficient CAPEX accretive growth spending opportunities Sustainable Integrated business 35 generation of organic model and bal
Slide 22: M&A criteria – focus on cash and value
M&A criteria – focus on cash and value Strategic VALUEcriteria Financial criteria ROACE ≥12% Strategic fit Cash profile Return profile Balanced Upstream and Free cash flow positive mid-term Defined investment hurdles Downstream portfolio considering Timely cash generation with a Focus on l
Slide 23: Strong track record in portfolio management
Strong track record in portfolio management 2018 Selected M&A projects: Upstream Upstream Upstream Upstream Upstream Investments Russia New Zealand UAE Russia Malaysia Acquired Signed Acquired 20% share Signed “Basic Sale Signed acquisition Divestments 24.98% share in acquisition of in two oil field
Slide 24: OMV acquires 50% of Malaysian Sapura Upstream
OMV acquires 50% of Malaysian Sapura Upstream ► Sapura Upstream: Major independent Malaysian oil and gas company, part of the Sapura Energy Group ► Purchase price of USD 540 mn ► Additional contingency payment of up to USD 85 mn ► Sapura Upstream total debt position of USD 350 mn (100%), at closing
Slide 25: Strategic rationale for Sapura Upstream acquisition
Strategic rationale for Sapura Upstream acquisition ► Gas demand expected to increase by 50% in Asia Pacific Access to a until 2030 growing market ► OMV capitalizes on the increase of LNG demand and growing Asian markets ► Australasia becomes a new core region Adding 260 mn 1 ► Immediately increases
Slide 26: Acquisition of a 20% stake in two offshore fields in Abu Dhabi from ADNOC
Acquisition of a 20% stake in two offshore fields in Abu Dhabi from ADNOC ► OMV signed a concession agreement for the acquisition of a 20% stake in two offshore oil fields from ADNOC: ► Satah Al Razboot (SARB) including the satellite fields Bin Nasher and Al Bateel ► Umm Lulu ► Commencement of conce
Slide 27: Abu Dhabi – high-quality assets with substantial cash generation
Abu Dhabi – high-quality assets with substantial cash generation Adding 450 mn bbl to ► Substantially strengthening OMV‘s reserves base OMV’s reserve base ► Upside potential from satellite fields 43 kbbl/d long-term ► Production started in Q3 with initial capacity of 10 kbbl/d plateau production ► E
Slide 28: Acquisition in New Zealand
Acquisition in New Zealand ► Acquisition of Shell’s Upstream business in Adding up to 100 mn boe New Zealand: of recoverable resources ► Increased stake in Pohokura by 48% and in Maui by 83.75% (31 kboe/d in Jan-Feb 2018) Immediate production contribution at closing ► 60.98% interest in the Great So
Slide 29: Balanced and upgraded portfolio in Upstream
Balanced and upgraded portfolio in Upstream Production volume Production cost Kboe/d USD/bbl ~500 (45) -45%% Australasia 13.2 421 MEA 10.6 348 North Sea 303 311 8.8 7.6 7.2 Russia CEE 2015 2016 2017 9m/18 Exit-rate 2015 2016 2017 9m/2018 2018e 2018 1 Indicative illustration pending on closing the Ne
Slide 30: Progressive development of OMV in 2018
Progressive development of OMV in 2018 Clean CCS Operating Result Clean CCS ROACE in EUR mn % 3.0 14 2.6 12 Target 2.3 ≥ 12% 1.7 8 1.5 7 2015 2016 2017 9m/2017 9m/2018 2015 2016 2017 9m/2018 Upstream Downstream Others 30 | Capital Market Story, December 2018
Slide 31: First nine months of 2018: strong momentum
First nine months of 2018: strong momentum Clean CCS Operating Result ► Strong operating result despite one-off effects EUR mn +14% ► Q3/18: most profitable result in a decade ► Production cost -14% due to cost cutting and FX 171 2.593 ► Q3/18: first time below USD 7/boe 361 53 98 30 2.270 207 ► Ref
Slide 32: Focused investments
Focused investments CAPEX Acquisitions EUR bn EUR bn 2.0 - 2.5 10 2.1 1.9 Downstream 8 years 1.8 Upstream 3 years 1.7 2015-2017 2018 2018-2025 2015-2017 2018 1 2018-2025 Ø p.a. Ø p.a. Efficient capital allocation Value adding acquisitions Strict cost management Keep optionality and flexibili
Slide 33: Focus on cash flow
Focus on cash flow Cash flow 2015 – 9m/2018 EUR bn 1.8 Disposals 0.3 Organic free ► Significant increase of the organic free 0.3 1.9 1.9 cash flow before cash flow dividends 0.9 (0.1) ► Able to fund acquisitions and dividends 2015 2015 2016 2016 2017 2017 9m/2018 9m/2018 from the organic free cash f
Slide 34: Attractive shareholder return
Attractive shareholder return Annualized Total shareholder return Last five 2017 Last three years years OMV 61% 39% 18% Peers 1 20% 27% 13% ATX 2 34% 19% 10% FTSEUR1ST 300 OIL & GAS 2 6% 10% 6% FTSE EUROTOP 100 2 9% 6% 9% 1 BP, ENI, Galp, Lundin Petroleum, MOL, Neste Oil, PKN Orlen, Repsol, Shell, S
Slide 35: Progressive dividend policy
Progressive dividend policy Dividend per share EUR 50% ++50% 1.5 Record dividend of EUR 1.50 per share for 2017 proposed 1.2 We are committed to delivering an attractive and 1.0 predictable shareholder return through the business cycle Progressive dividend policy: OMV aims to increase the divi
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Slide 37: Upstream
Upstream OMV Aktiengesellschaft
Slide 38: Upstream – at a Glance
Upstream – at a Glance 2017 position 348 kboe/d production (9m/18: 421 kboe/d) Norway with an oil and gas split of 52:48 Russia Romania Production cost at USD 8.8/boe (9m/18: USD 7.3/boe) Austria Kazakhstan Bulgaria Kurdistan Region of Iraq 1P Reserves of 1,146 mn boe Tunisia Libya Pakistan 1
Slide 39: Growing production, lowering cost
Growing production, lowering cost Production Production cost 1 Kboe/d USD/boe 421 (45) -45%% 13 Australasia 13.2 50 MEA 348 17 303 311 73 North Sea 10.6 18 47 20 19 23 8.8 71 79 48 98 Russia 7.6 7.2 9 211 202 196 187 CEE 2015 2016 2017 9m/18 2015 2016 2017 9m/2018 2018e 1 OMV aligned the production
Slide 40: Increased earnings
Increased earnings Clean Operating Result Clean Operating Result EUR mn EUR mn +65% 1,225 1,449 880 117 40 2015 2016 2017 9m/17 9m/18 52 44 54 52 72 Oil price, USD/bbl Oil price, USD/bbl 40 | Capital Market Story, December 2018
Slide 41: Strengthened reserve base
Strengthened reserve base 1P Reserves Reserve Replacement Rate 1P Reserve Replacement Cost Mn boe 3 years Ø RRR, % 1 year Ø, USD/boe 1,146 15 Australasia 1,028 1,030 186 MEA 110 North Sea 116 194 Russia 58 73 70 77 641 CEE 31 17 10 2015 2016 2017 2015 2016 2017 2015 2016 2017 3 years peers’ median 2
Slide 42: Upstream strategy 2025
Upstream strategy 2025 Renew and improve the quality of our asset base Double reserves Extend track record of operational excellence Increase cash generation Higher-quality portfolio generating more cash 42 | Capital Market Story, December 2018
Slide 43: Drive production organically and via acquisitions
Drive production organically and via acquisitions Production growth Kboe/d 600 500 Acquisitions >420 Production cost 348 Organic growth both in 2020 and 2025 e.g. Neptun, Nawara, USD/boe Aasta Hansteen <8 Asset base 2017 2018 1 2020 2025 1 Excluding acquisitions and divestments 43 | Capital Market S
Slide 44: Ensure sustainable reserve replenishment
Ensure sustainable reserve replenishment 1P Reserve development Bn boe >2.0 1P Reserves Reserve life years 2x 8-10 1.1 Reserve Replacement Rate Gas share 3 years Ø, % % >100 >50 2017 2025 44 | Capital Market Story, December 2018
Slide 45: Exploration: Faster and more disciplined approach
Exploration: Faster and more disciplined approach Excellent Barents Sea track record Active in Austria, Romania deep onshore, Black Sea, Norway and New Zealand Increase size and quality of E&A portfolio Achieve faster monetization of discoveries Apply proven excellence in exploration Play
Slide 46: Technology drives recovery and reduces downtime
Technology drives recovery and reduces downtime Highlights Mean-time-between-failure of producing wells of over 1,900 days (Austria) Reduced number of well interventions per year from over 150,000 to below 6,000 (Romania 1) Low cost drilling 2 and drilling world records Over 80% automated
Slide 47: Transform OMV Upstream into a top digital player
Transform OMV Upstream into a top digital player Project examples Drilling cockpit for real-time collaboration Latest 3D visualization technology for geological interpretation Machine learning and cloud solutions for seismic data processing Future objectives Faster project evaluation for
Slide 48: Focus on 4+1 regions
Focus on 4+1 regions North Sea Russia CEE Australasia MEA OMV Upstream regions Core region – CEE Core region – North Sea Core region – MEA Core region – Russia Development region – Australasia Growth 48 | Capital Market Story, December 2018
Slide 49: Sustain value generation in Romania and Austria, realize Black Sea potential
CEE I Russia I North Sea I Middle East and Africa I Australasia Sustain value generation in Romania and Austria, realize Black Sea potential Presence in CEE Production split 9m/18 Strategic direction Kboe/d 7 27 Maximize profitable recovery Infill drillings, workovers, selected field re-developm
Slide 50: Growth project in Romania - Neptun Deep, Black Sea
CEE I Russia I North Sea I Middle East and Africa I Australasia Growth project in Romania - Neptun Deep, Black Sea Neptun Deep – Project Phase: Engineering (pre-FID) Licensees: ExxonMobil (Operator, 50%), OMV Petrom (50%) Domino-1 discovery in 2012 (first offshore deep water exploration well)
Slide 51: Russia - Build upon huge potential
CEE I Russia I North Sea I Middle East and Africa I Australasia Russia - Build upon huge potential Presence in Russia Production 9m/18 Strategic direction Kboe/d Realize organic growth potential 100 kboe/d from Yuzhno Russkoye over next years 98 Upside from Turonian reservoir layer Russia Co
Slide 52: Yuzhno Russkoye and Achimov 4A/5A provide stable and sustainable production
CEE I Russia I North Sea I Middle East and Africa I Australasia Yuzhno Russkoye and Achimov 4A/5A provide OMV with stable and sustainable production Yuzhno Russkoje Achimov 4A/5A OMV production contribution from Russian fields 1 Kboe/d 150 100 50 0 2018 2019 2020 2021 2022 2023 2024 2025 Stable pr
Slide 53: Achimov 4A/5A
CEE I Russia I North Sea I Middle East and Africa I Australasia Achimov 4A/5A “Basic Sale Agreement” signed on October 3, 2018 OMV’s share of Achimov 4A/5A production development OMV to receive a 24.98% stake in Achimov 4A/5A blocks in the Kboe/d Urengoy gas and condensate field for a purchase p
Slide 54: North Sea - Secure long-term sustainable contribution
CEE I Russia I North Sea I Middle East and Africa I Australasia North Sea - Secure long-term sustainable contribution Presence in North Sea Production 9m/18 Strategic direction Kboe/d Bring Aasta Hansteen on stream First gas in Q4 2018 74 Cumulative gas production of up to 43 mn boe Wisting
Slide 55: Growth project in Norway - Aasta Hansteen
CEE I Russia I North Sea I Middle East and Africa I Australasia Growth project in Norway - Aasta Hansteen Aasta Hansteen field – Project Phase: Execution Licensees: Equinor(Operator, 51%), Wintershall (24%), OMV (15%), ConocoPhillips (10%) Cumulative production of dry gas (from three discoveries
Slide 56: OMV's oil discovery – Wisting, Barents Sea, Norway
CEE I Russia I North Sea I Middle East and Africa I Australasia OMV’s oil discovery – Wisting, Barents Sea, Norway Wisting, Norway – Project Phase: Appraisal Licensees: OMV (Operator, 25%), Petoro, Idemitsu (each 20%) and Equinor (35%) Estimated 50-130 mn bbl (net to OMV) total recoverable oil r
Slide 57: Grow and access potential in Middle East and Africa
CEE I Russia I North Sea I Middle East and Africa I Australasia Grow and access potential in Middle East and Africa Presence in MEA Production split 9m/18 Strategic direction Kboe/d 2 1 5 Secure stable contribution Libya 5 Maintain and grow production level 50 30 Assess Nafoora field expansion
Slide 58: Abu Dhabi – High-quality assets with substantial cash generation
CEE I Russia I North Sea I Middle East and Africa I Australasia Abu Dhabi – High-quality assets with substantial cash generation ► OMV was awarded a 20% stake in two ADNOC offshore oil fields: ► Satah Al Razboot (SARB) including the satellite fields Bin Nasher and Al Bateel ► Umm Lulu ► Commencement
Slide 59: Growth project in Tunisia - Nawara
CEE I Russia I North Sea I Middle East and Africa I Australasia Growth project in Tunisia - Nawara Nawara field – Project Phase: Execution Licensees: OMV (Operator, 50%), ETAP (50%) Cumulative production 1: 40-50 mn boe of gas Production start: expected in 2019 Peak production 1: ~10 kboe/d
Slide 60: Developing a new core region
CEE I Russia I North Sea I Middle East and Africa I Australasia Developing a new core region Production 9m/18 Strategic direction Philippines Kboe/d Develop Sapura Upstream as platform for further regional growth Malaysia 13 Realize upside of current position in New Zealand Indonesia Strong an
Slide 61: OMV acquires 50% of Sapura Upstream
CEE I Russia I North Sea I Middle East and Africa I Australasia OMV acquires 50% of Sapura Upstream Sapura Upstream presence in Malaysia ► Sapura Upstream: Major independent Malaysian oil and gas company Vietnam Philippines ► Total cumulative production estimated at around 260 mn boe 1 (100%) Malays
Slide 62: Sapura Upstream - near-term production growth and low CAPEX
CEE I Russia I North Sea I Middle East and Africa I Australasia Sapura Upstream - near-term production growth and low CAPEX Sapura Upstream production 1 Kboe/d ► Near-term production growth ~60 ► Plateau production of ~60 kboe/d 1, 2 (100%) ► Production split: ~90% gas and ~10% oil ► Majority of gas
Slide 63: Sapura Upstream - Summary of assets
CEE I Russia I North Sea I Middle East and Africa I Australasia Sapura Upstream - Summary of assets Producing Production Working Malay Basin, Block Type start interest Partner Operated assets primary year % PETRONAS PM318 Oil 2008 50 by Petronas Carigali PETRONAS PM323 Oil 2008 60 by Sapura Carigali
Slide 64: Increased footprint in New Zealand
CEE I Russia I North Sea I Middle East and Africa I Australasia Increased footprint in New Zealand Increased stake in Pohokura by 48% and in Maui Adding up to 100 mn boe by 83.75% (31 kboe/d in Jan-Feb 2018) of recoverable resources 60.98% interest in the Great South Basin exploration block Imme
Slide 65: Upstream pipeline
Upstream pipeline Development New ventures Exploration Appraisal & Execution MEA Austria Neptun Deep Aasta Hansteen (Norway) Australasia Romania deep onshore (Romania, Black Sea) Nawara (Tunisia) Black Sea Wisting Umm Lulu/SARB (Norway) (United Arab Emirates) 1 Norway Hades a
Slide 66: Major projects
Major projects Development Production Cumulative Peak Working Project Country Type start production 1 production interest Operated FID & Execution primary year mn boe kboe/d % year Aasta Hansteen Gas 2018 ~43 ~18 15.0 no 2012 Nawara Gas 2019 40-50 ~10 50.0 by OMV 2014 Gas and Achimov 4A/5A 2 2020 56
Slide 67: Strategic partnerships enable access to competitive upstream positions
Strategic partnerships enable access to competitive upstream positions Long-term cooperation along the entire integrated value chain Decade-long cooperation in the Downstream Gas business Access to competitive upstream assets MoU on Strategic Cooperation in the natural gas sector Strengthen re
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Slide 69: Downstream
Downstream OMV Aktiengesellschaft
Slide 70: Downstream Oil in a nutshell
Downstream Oil in a nutshell Downstream Oil presence 2017 position 17.8 mn t (370 kboe/d) annual refining capacity in Czech Republic 146 Austria, Germany and Romania Slovakia Hungary Romania Moldova 91 187 555 79 2.5 mn t petrochemical production capacity 36% share in Borealis - leading polyol
Slide 71: Downstream Oil Value Chain
Downstream Oil Value Chain 2017 figures Refinery Product supply and Petrochemical/ commercial/ Crude supply production logistics retail sales Purchase of semi- Purchase of Retail finished products 1.5 mn t 1 finished products 4.0 mn t 2 6.2 mn t 47% Captive market 4 Equity crude production Business-
Slide 72: Downstream Gas in a nutshell
Downstream Gas in a nutshell Downstream Gas presence 2017 position 113 TWh natural gas sales, out of which ~70% equity supplied Netherlands 51% share in Gas Connect Austria, the Austrian pipeline operator Germany 31 TWh gas storage capacities in Austria and Germany Austria Hungary Romania 1
Slide 73: Downstream Gas Value Chain
Downstream Gas Value Chain 2017 figures Gas supply Gas logistics Gas marketing sales Equity production in Romania 49 TWh Gas sales to third parties Equity production 113 TWh in Norway 19 TWh Sales in Europe1 57 TWh Equity production Gas supply in Austria portfolio 9 TWh Sales in Romania 157 TWh Gas
Slide 74: Best in class refinery utilization rate and stable sales
Best in class refinery utilization rate and stable sales Refined product sales Retail sales mn t mn t 10.3 10.4 30.0 30.7 8.1 23.8 OMV Petrol Ofisi OMV Petrol Ofisi divested in June divested in June 2017 2017 20.0 20.1 19.8 5.7 6.0 6.2 2015 2016 2017 2015 2016 2017 Refinery utilization rate Natural
Slide 75: Downstream financial performance
Downstream financial performance Clean CCS Operating Result Attractive returns EUR bn RONA in % 2 18 1.8 17 1.5 1.5 0.2 14 14 0.1 0.1 0.2 0.1 1.2 0.6 0.6 0.1 Downstream Gas OMV Petrol Ofisi 0.6 0.5 Petrochemicals 0.2 0.3 9.2 8.8 Average net 7.9 7.8 assets Fuels Retail in bn EUR 0.3 0.3 0.6 0.5 0.3 0
Slide 76: Downstream - Strong cash flow generator
Downstream - Strong cash flow generator Downstream Free Cash Flow EUR bn 1.7 1.3 0.6 0.1 1.1 0.8 Cash flow from disposals 0.1 and for inorganic investments 1.2 1.1 1.1 0.8 Organic free cash flow (0.1) 2015 2016 2017 9m/2018 76 | Capital Market Story, December 2018
Slide 77: Downstream strategy 2025
Downstream strategy 2025 Europe International ► Downstream Oil: Further strengthen ► Export successful European refining competitive position and petrochemical business model to international growth markets ► Operational excellence ► Shift to higher value products ► Nearly double refining capacity ►
Slide 78: OMV will upgrade its European refining assets to market changes
OMV will upgrade its European refining assets to market changes European market OMV European production 2016 - 2025 volume 2025 Change 2025 volumes Up to EUR ~ 1 bn planned investments +12% 2.8 mn t for upgrades in 2018 - 2025 Petrochemicals Increase production of petrochemicals Maximize jet f
Slide 79: 3 refining sites – 1 integrated refinery concept
Continuous efforts on operational excellence SCHWECHAT 3 refining sites – 1 integrated refinery concept Optimize asset utilization through intermediate product exchanges Increase the share of higher value products with minimum investments Identify and maximize high margin feedstock ~ EUR 50
Slide 80: Flexible crude intake in OMV refineries
Flexible crude intake in OMV refineries Processed crude oil quantity 2017 Processed crude oil quality 2017 2 Austria Heavy Others 5% 13% Romania Iraq 7% 22% Russia 7% Medium Light 8% Azerbaijan 19% Kazakhstan 19% Libya 2 Heavy crude API < 24; Light crude API > 34 According to US SEC 80 | Capital Mar
Slide 81: Favorable yield structure
Favorable yield structure OMV 3 refineries – integrated refinery yield % Heavy Fuel Oil Yield (%) OMV vs European refineries 1 12% Petrochemicals 9% 17% Gasoline <1% Sulfur 50% Middle distillates 7% Other black products 2 >1% Sulfur 2% 2% Heavy Fuel Oil 3% Others 9% Internal consumption OMV European
Slide 82: IMO 2020 - OMV well positioned to capture the benefits of marine fuel market changes
IMO 2020 - OMV well positioned to capture the benefits of marine fuel market changes with no further investments Advantaged Low heavy Financial equity crude fuel oil yield impact & site flexibility 2% heavy fuel oil yield In 2020 OMV will decrease significantly the Capturing full market benefi
Slide 83: OMV Retail – strong brands driving value growth
OMV Retail – strong brands driving value growth OMV Petrom Avanti and Diskont ~65% of network ~25% of network ~10% of network Premium fuels; share in sales doubled since 2012 Most trusted retail brand in Perceived as most Leading shop and gastronomy concept in CEE Romania competitive i
Slide 84: Retail ambitions for the future
Retail ambitions for the future Profitability turnaround in last 6 years Highly efficient retail stations AT average DE average Operating Result per filling station, EUR 1,000 1 Average throughput per station, mn liters 1 2 RO average OMV Group 3.6 3.7 3.8 ~3.8 160 ~160 ~25% 10 2012 2013 2014 2015 2
Slide 85: Strong petrochemicals position in Europe and potential for future growth
Strong petrochemicals position in Europe and potential for future growth Production capacity Clean CCS Operating Result petrochemicals Mn t p.a. EUR mn 2.8 ~300 2.5 Butadiene and 2.3 aromatics 245 1.8 Propylene 109 104 Ethylene 1 2005 2010 2017 2025 2005 2010 2017 2025 Strong partnerships with lon
Slide 86: The share in Borealis is a core asset in OMV Downstream
The share in Borealis is a core asset in OMV Downstream and a basis for further growth Polyolefin production capacity Mn t p.a. Borealis Borealis contribution to #6 in polyolefins globally (incl. 100% of Borouge) OMV’s Clean CCS Operating Result in EUR mn #2 in polyolefins in Europe Borouge III
Slide 87: OMV will further improve its best in class captive sales volume
OMV will further improve its best in class captive sales volume Refineries Sales Retail sales volume % of refining capacity Equity crude oil processed 25% Captive sales outlets % of refining capacity % 35% 9% 40% 32% 25% 47% 21% Petrochemical sales volume 55% % of refining capacity 7% OMV – top refi
Slide 88: OMV – innovation for future markets
OMV – innovation for future markets Mobility Recycling Electric Hydrogen Gas Plastics to Oil Alternative energies Assets 25 10 56 800 t p.a. EV charging stations in Hydrogen stations CNG stations 1 Pilot plant in Austria OMV stations Ambition Scaling Frequency Profitability Scaling 88 | Capital Mark
Slide 89: Europe needs more natural gas
Europe needs more natural gas EU-28 gas supply and demand Billion cubic meter (bcm) 500 460 ~40 Increasing European import demand supported by Imports ~ 330 the switch from coal to gas ~375 Declining European indigenous production requires further gas import volumes EU-28 production ~130 ~85 Dem
Slide 90: OMV aims to double the natural gas sales and build a strong market presence in Europe
OMV aims to double the natural gas sales and build a strong market presence in Europe Nord Stream Yamal-Europe Increase equity gas volumes in Norway, Romania and Russia Nord Stream 2 Urengoy-Uzhgorod Leverage Nord Stream 2 to support TransBalkan Baumgarten hub OPAL Secure utilization of LNG te
Slide 91: Nord Stream 2: Improvement of energy security in Europe
Nord Stream 2: Improvement of energy security in Europe Nord Stream 2 pipeline project Natural gas pipeline from Russia to Europe across the Baltic Sea Nord Stream 1 Russia 55 bcm per year capacity Development started in 2018 and is planned to finish by 2019 Nord Stream 2 Total project costs
Slide 92: Develop international Downstream Oil position
Develop international Downstream Oil position Export successful European model to growing markets Establish 1-2 core regions outside Europe; MoU with ADNOC Long term Expand petrochemical position Nearly double refining capacity Acquisition budget Grow refining capacity until 2025, EUR bn ~5 92
Slide 93: The majority of demand growth driven by Asia
The majority of demand growth driven by Asia Development of fuels and petrochemicals demand 2016 to 2030 Mn t +20 +7 +18 1 Europe Russia (60) +320 +32 +70 +12 +15 Americas +210 Middle East +50 Fuel products +18 Petrochemicals Africa Asia ► Growth in global oil demand >90% from Asia 1 CIS & EE ► Grow
Slide 94: Increase in demand triggers substantial capacity additions
Increase in demand triggers substantial capacity additions Global refinery capacity vs. demand 1 Petrochemicals capacity vs. demand Mn t p.a. Mn t p.a. 155 250 145 200 = = 5,400 880 4,950 580 Borouge ~25 Schwechat x refinery ~35 x polymer capacity 2016 Announced Gap 2030 2016 Announced Gap 2030 4,80
Slide 95: Strong oil demand required utilization rates above 80% in Asia, Middle East and Russia
Strong oil demand required utilization rates above 80% in Asia, Middle East and Russia Europe Russia Middle East Asia Africa 84% 88% 85% 85% 82% 82% 73% 73% Refinery utilization rate 1 65% 61% 2017 - 2030 2017 2030 2017 2030 2017 2030 2017 2030 2017 2030 Standard refining margin 4.9 >5.3 2 6.6 n.a.
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Slide 97: Financials
Financials OMV Aktiengesellschaft
Slide 98: Financial steering framework
Financial steering framework Shareholder return and strong rating Value + Cash Focus Strength of balance sheet and Growth in profitability and steady value enhancement adequate liquidity KPIs ROACE/EVA Free cash flow after dividends Gearing Clean CCS net income/NOPAT Principles Operational efficie
Slide 99: Funding the growth – mid term perspective
Funding the growth – mid term perspective Sources of cash Uses of cash 3 years cumulative, indicative based on 2018 - 2020, EUR bn 2017 Operating cash flow, EUR bn Cash contribution Disposals and from M&A Gearing cost optimizations 2018 - 2020 headroom 2 3x 2017 Allocation optionality Operating cash
Slide 100: Development of economic environment
Development of economic environment Oil prices USD/bbl OMV indicator refining margin USD/bbl 80 74 75 8 67 7.0 61 5.7 5.7 60 52 68 6 5.2 61 4.8 56 58 40 47 4 Average Brent price 20 Average realized crude price 2 0 0 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Gas prices Ethylene/prop
Slide 101: Financial performance overview
Financial performance overview in EUR mn (unless otherwise stated) 9m/18 2017 2016 2015 2014 2013 Clean CCS Operating Result before depreciation 1, 2 3,652 4,909 3,693 4,117 4,749 4,639 Clean CCS Operating Result 2 2,593 2,958 1,535 1,737 2,418 2,815 Clean CCS net income attributable to stockholders
Slide 102: Income statement summary
Income statement summary in EUR mn 9m/18 2017 2016 2015 2014 2013 Operating Result 2,265 1,732 (32) (1,661) 1,149 2,772 thereof Borealis 293 394 399 356 205 152 Net Financial Result (176) (246) (198) (248) (357) (481) Taxes on income (889) (634) 47 654 (265) (562) Net income 1,200 853 (183) (1,255)
Slide 103: Segments results
Segments results in EUR mn 9m/18 2017 2016 2015 2014 2013 Clean CCS Operating Result 1 2,593 2,958 1,535 1,737 2,418 2,815 Upstream 1,449 1,225 40 117 1,641 2,098 Downstream 1,198 1,770 1,533 1,546 812 755 Corporate and Other (14) (16) (50) (43) (48) (46) Consolidation (40) (21) 12 116 13 7 1 Adjust
Slide 104: Cash flow
Cash flow in EUR mn 9m/18 2017 2016 2015 2014 2013 Net income 1,200 853 (183) (1,255) 527 1,729 Depreciation, amortization and impairments incl. write-ups 1,388 1,941 3,784 5,153 3,165 2,289 Change in net working capital components 8 (424) (148) (400) 405 647 Other 684 1,078 (575) (664) (431) (541)
Slide 105: Strong financial footing
Strong financial footing Net debt and gearing ratio EUR bn 4.0 Cash position Target long-term 3.0 EUR bn 1 gearing ratio 28% 21% 4.0 ≤30% 2.0 14% Undrawn revolving Gearing ratio credit facilities EUR bn 1 Net debt 3.5 1 As of end 2017 2015 2016 2017 105 | Capital Market Story, December 2018
Slide 106: Balanced maturity profile
Balanced maturity profile Maturity profile 1 Strong investment grade rating EUR bn 1.5 A3 A- Outlook stable Outlook stable 1.0 May 21, 2018 June 7, 2018 Financing costs 2 0.5 2015 2017 0.0 2.45% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027ff 2.76% 2 Weighted average interest rate of OMV Group’s
Slide 107: Funding activities of the last years
Funding activities of the last years Date of issue Bond Amount in EUR mn Coupon in % Maturity November 2013 Eurobond (XS0996734868) 500 1.75 fix 11/25/2019 February 2010 Eurobond (XS0485316102) 500 4.375 fix 02/10/2020 October 2011 Eurobond (XS0690406243) 500 4.25 fix 10/12/2021 September 2012 Eurob
Slide 108: Sensitivities of OMV Group in 2018
Sensitivities of OMV Group in 2018 Annual impact 1 Clean CCS Operating Operating cash flow in EUR mn Result 2 Brent oil price (USD +1/bbl) +45 +30 OMV realized gas price (EUR +1/MWh) +125 +95 CEGH/NCG gas price 3 (EUR +1/MWh) +40 +35 OMV indicator refining margin (USD +1/bbl) +105 +80 Ethylene/propy
Slide 109: Diversified international shareholder base
Diversified international shareholder base Shareholder structure 1 Geographical distribution of 0.3% institutional investors 1 0.2% 8.5% 8% 31.5% 18% 32% Institutional 327.3 mn investors 27.3% shares 27.3% 4% 6% 24.9% 7.2% 11% 22% Institutional investors ÖBIB 2 Austria United States Unidentified fre
Slide 110: OMV has a two-tier Board structure
OMV has a two-tier Board structure Supervisory Board Two boards with distinctive roles: Executive Board (EB1) responsible for managing the company and representing it vis à vis third parties Supervisory Board responsible for monitoring and guiding the EB1 Information, Supervision, guidance,
Slide 111: Sustainability
Sustainability OMV Aktiengesellschaft
Slide 112: Growth strategy is implemented in a safe, responsible and carbon efficient manner
Growth strategy is implemented in a safe, responsible and carbon efficient manner Safety first Carbon efficiency Recognition Carbon intensity Lost Time Process safety GHG emissions per unit Injury Rate events OMV Operations External product sales 1 3 (23)% (74)% (15)% stable 2017 vs 2014 2017 vs 201
Slide 113: Sustainability at OMV
Sustainability at OMV What Sustainability means for us Where we concentrate our efforts Sustainability for OMV means creating long-term value for our customers and Employees HSSE shareholders by being innovative and an employer of choice. FOCUS FOCUS AREAS AREAS Carbon Innovation Efficiency We condu
Slide 114: OMV's Sustainability Focus Areas
OMV‘s Sustainability Focus Areas Focus Areas Commitments Health, Safety, Security and Health, safety, security and environmental protection have top priority in all activities Environment HSSE vision of “ZERO harm - NO losses” Commitment to climate change mitigation and responsible resource ma
Slide 115: ESG performance
ESG performance OMV joined the Dow Jones Sustainability Index, being the only Austrian company included. OMV received the highest “AAA” score from MSCI Global Sustainability Index for the sixth year in a row. OMV was reconfirmed as a constituent of two MSCI indexes: ACWI ESG Leaders Index and AC
OMV Aktiengesellschaft — Non-Deal Roadshow (December 2018) on 6ix